Bbg: CA - Home Sales Plunge 21%

What’s missing from this article? No mention anywhere about what additional Fed rate rises will do to already downcast projections.

My take is “This is no country for homesellers, or first-time buyers.”

Bloomberg headline: California Home Sales Plunge 21% as Soaring Mortgage Rates Hit

Sub-headline: The pace of purchases in June was down the most since May 2020, when the pandemic lockdown was in full effect.

ByJohn Gittelsohn

July 18, 2022, 8:40 PM UTC

Single-family home prices in the most populous state fell to a median of $863,790 in June, down 4% from the all-time high of $900,170, set in May. Prices were still 5.4% higher than a year earlier. Other signs pointing to a cooldown include fewer pending sales, a growing inventory of available homes and a shrinking share of deals closing above the asking price.

Consumers were downbeat in June, according to a CAR survey that found 79% of respondents believed economic conditions in California won’t improve in the next 12 months, while 85% believed interest rates won’t fall within a year.

The drop in sales hit most regions and price points and is expected to last through this year. The group projects 380,630 single-family home sales this year, a decline of 14% from the 444,520 units sold in 2021.